DE30: DAX is trading lower after weak data from Germany

• Most indices in Europe are trading lower today
• The DE30 is losing 0.50% and is trading near 15700 points
• Industrial orders data from Germany again come in well below analysts' expectations
• Daimler (DTG.GE), Cummins and Paccar form a joint venture to build a battery plant in the U.S. to accelerate production of electric trucks

Today's trading session on the Old Continent is mostly in the red. Germany's DAX is losing 0.5%, France's CAC40 is down 0.8% and Britain's FTSE 100 is trading 0.4% lower. European stock markets are continuing their declines after disappointing data from Germany and elevated oil prices renewed concerns about economic growth and inflation. Yesterday's significant rise in oil above $90 per barrel may persist due to an excess of demand over supply. Such a picture does not sit well with most European countries and the US, for the reason that higher oil prices will support price increases in many sectors of the inflation basket.

Moreover, today's German factory orders readings showed a continuation of very weak data from industry. Deseasonalized orders fell by -11.7% on a monthly basis versus a forecast of -4% and -10.5% on an annual basis. This is further data pointing to an area of contracting in the German economy, following yesterday's PMI reading for services at 47.3 and Monday's trade surplus data, which fell 15% m/m to €15.9 billion in July, with exports falling 0.9% m/m, while imports rose 1.5% m/m. 

Looking at the DE30 from a technical perspective, the stock is still trading high. However, the short-term pattern indicates a continuation of the downward trend. The recently broken support line at 15770 points has increased downward pressure. If the quotations do not stop at the next support level at 15650 then we could see a decline all the way to the long-term zone at 15500 points. Otherwise, the resistance zone at 15770 points will be key. At the current juncture, the DE30 is only just over 5.0% from this year's highs. Source xStation 5Companies in Europe are trading mostly below the dash today. Commerzbank (CBK.DE) and Deutsche Bank (DBK.DE) are posting significant losses, with Zalando (ZAL.DE) and Rheinmetall (RHM.DE) also under sellers pressure. Source: xStation5

News from the companies:

Siemens Energy (ENR.DE) - is up 1.20% after analysts at Barclays issued a buy recommendation for the company with a target price of €19.00 against a current price of €12.70. Following this recommendation, Siemens now has 11 buy recommendations, 7 hold recommendations and 1 sell recommendation.

Daimler Truck (DTG.DE) announced a joint venture project in cooperation with Cummis and Paccar to build a battery factory in the US. The new investment is aimed at meeting growing demand for these products and accelerating production of electric trucks. The cost of producing batteries with a total capacity of 21 gigawatt-hours is expected to cost between $2 billion and $3 billion. China's EVE Energy Co. will be a technology partner.Source: xStation 5